BPL Mobile buys out AT&T stake

MUMBAI: In a consolidation bid, the BPL Mobile group has acquired the entire 49 per cent equity held by its partner AT&T Wireless in BPL Mobile Cellular, the operating company which owns and operates the GSM licence in Maharashtra, Goa, Tamil Nadu, Kerala, and Pondicherry.
While BPL Mobile officials were tightlipped about the buy out costs, analysts feel the outgo to be around Rs 900 crore for the buy out.BPL Mobile Cellular will now become a 100 per cent BPL Mobile-owned company.
The decision to buy out the AT&T stake follows AT&T’s decision to concentrate its operations in North America and monetise its non-North American assets.
AT&T has invested over Rs 740 crore including a recent investment of Rs 200 crore in the Indian JV. Confirming the development, Sandip Basu, president and CEO of BPL Mobile said, ‘‘AT&T and its predecessors US West and MediaOne have been supportive shareholders and partners of BPL Mobile Cellular over the last 6 years and the company holds them and their support in great esteem. However, we are moving towards the next stage of consolidation and growth and I believe the timing of the acquisition could not have been better.’’
‘‘The acquisition of the AT&T stake gives us flexibility to approach financially strong investors who are committed to investing in the Indian cellular markets,’’ Basu added.
BPL Mobile is now expected to aggressively scout for acquisitions to establish a pan India footprint. The company is close to finalising a mandate with a leading investment banker to draw up its future growth strategy.
On being asked whether the company would be looking at taking on France Telecom, as a partner in BPL Mobile Cellular, Basu said, ‘‘All options are open to get a fresh strategic partner, it could be France Telecom or a fresh partner.’’ France Telecom holds 26 per cent stake in the group’s other operating company BPL Mobile Communications which operates the group’s GSM operations in Mumbai.
The group which recently concluded the financial closure of its projects, is also planning a fresh investment of Rs 500 crore to develop its network infrastructure and brand visibility.
The company has already doubled its switching capacity in Mumbai besides installing over 200 base transceiver stations across Mumbai, rest of Maharashtra, Kerala, and Tamil Nadu.
The company is also in talks with Nokia to launch the enhanced data rates for GSM communications evolution platform to offer broadband internet and enhanced data services to its subscribers.
The group is planning an IPO sometime later once the consolidation process is complete and it achieves a pan India presence.